ESDS Software Solutions IPO opens today: What you need to know

ESDS Software Solutions is set to launch its maiden initial public offering (IPO) on August 28, 2026, with the close on September 1, 2026. The company has set the price band for its Equity Shares at Rs 408 to Rs 429 per share. Investors are required to bid for a minimum of 34 Equity Shares, and additional shares can be bought in multiples of 34.

The IPO size is estimated at up to Rs 720 crore, with proceeds earmarked for upgrading data centre infrastructure and general corporate purposes. Of the net offer, 50% is allocated to qualified institutional buyers, while 15% to 35% is assigned to non-institutional bidders and retail individual bidders, respectively. Anchor investors have contributed Rs 215.99 crore towards the IPO.

ESDS Software Solution Limited, founded in 2005, is a provider of AI-enabled cloud, managed services, data centre infrastructure, and software solutions in India. The company is one of the two major players in the sector, offering a full range of cloud solutions and services. It has a substantial market capitalization and has shown robust revenue growth, with an expanding EBITDA margin.

The IPO is expected to benefit from the growing Indian cloud and data centre market, with an anticipated growth rate of 20.7% annually from FY26 to FY30. Despite facing some risks related to government exposure, customer concentration, and technological advancements, the company's diverse service offerings, strong profitability, and scalable business model are expected to mitigate these risks. ESDS is recommended for subscription at the cut-off price.